Title loans, as the name might suggest, is a type of loan that is focused on the title of a car. With these loans, a person signs the title of the car over for several hundred, or even a few thousand dollars. After approximately a month, the loan is paid back, and all is said and done. These types of loans are incredibly simple, straightforward, and easy to manage. Understanding what they can do is key to finding the best lender.
1. Title Loans Are Easy To Get
Unlike most loans, where a person must provide a considerable amount of paperwork and proof that he or she can pay back the loan, most lenders that handle a title loan aren’t going to make people go through all of this. Instead, the bulk of the process will include filling out a short application, showing the lender the car, title to the car, and personal identification, and then the lender will decide whether to approve the loan. They are as simple as this to obtain, making them wonderful for situations when a person doesn’t have the time to collect all the paperwork most loans require.
2. Title Loans Are Very Flexible With Acceptance
Getting a title loan doesn’t involve a lot of paperwork or information being shared. One aspect of this is that most title loan lenders aren’t going to care all that much about a low credit score, or a bad credit history. If a person has had financial struggles in the past and now has a bad credit score, he or she won’t have to worry all that much when it comes time to handle a title loan. Title loans are incredibly accepting, and often, will accept people regardless of their credit scores. This can be a quick way to obtain a lot of cash without having to go through a credit check.
3. Title Loans Don’t Require Much Commitment
Most loans out there are designed to have a long term, often years or even decades. If a person is already struggling financially, he or she might not want to make that kind of commitment on a loan. Even some of the “short-term” loans out there can last for several years. Unlike these loans, a car title loan isn’t going to have this issue. Most of these loans have a term window between 15 and 30 days. This means that, if the money can be scraped together, a title loan can easily be paid off and there is no decade-long commitment needed.
4. Title Loans Don’t Take Your Car
Because a title loan is exactly as the name suggests, a loan on the title of the car, a family that takes out one of these loans can keep the car and use it while the loan is being paid off. This is something that not all loans do, putting a title loan apart from many of the other types of loans out there. So long as the loan gets paid off, the family will be able to keep the car running.
